Last Updated on: 14th February 2021, 05:11 pm
A trendline is a line drawn over pivot highs or under pivot lows to show the prevailing direction of price. Trendlines are a visual representation of support and resistance in any time frame. They show direction and speed of price, and also describe patterns during periods of price contraction.
It’s one of the simplest, most basic tools for the trader’s usage on the trading platform. It connects a group of price rates throughout a chosen time frame (either price lows or highs). The more points it connects, the more stable and reliable a trend it will indicate.
Vincent Nyagaka is a Professional Trader, Analyst & Author. He has been actively engaged in market analysis for the past 7 years. He has a monthly readership of 100,000+ traders and has taught over 1,000 students since 2014. Vincent is also an experienced instructor and public speaker. Check out Vincent’s Professional Trading Course here.